EUR/CHF: Risks skewed to the downside for both the inflation and growth outlook – Danske Bank

EUR/CHF ended the day broadly unchanged after the SNB delivered a 25bp cut, bringing the policy rate to 0.25%, Danske Bank's FX analysts Kristoffer Kjær Lomholt and Filip Andersson report. 

SNB to make a final 25bp cut at the next meeting in June

"Overall, the SNB stuck to its previous guidance noting that the SNB 'will adjust its monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term'."

"The SNB signalled that risks are skewed to the downside for both the inflation and growth outlook. We stick to our call of final cut to the policy rate of 25bp at the next meeting in June, which would bring the policy rate to 0%. We stay bullish on CHF."